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By H. Lyn Bourne

This is the ninth annual tabulation of royalty information. Again this year, some of the older information has been deleted to make room for more than 30 new entries. Several articles and publications crossed the author's desk this past year that relate to mineral valuation and mineral royalty. Tom Loucks presented a paper, "The Valuation of Hard Rock Mineral Property," at the Rocky Mountain Mineral Law Foundation in Santa Fe, NM in July, 1990. His paper gives an indepth explanation of the definitions and concepts related to mineral valuation. It includes descriptions of numerous legal cases that have dealt with mineral valuation and proper reference is given for each case. Loucks works for the Denver Mining Finance Co. Gold royalties generally range from 5% to 7%, net smelter return. However, Severn Brown sent information that shows a much wider variation. Echo Bay Mines reported in its 1989 annual report royalties that range from 1.5 % to 30% for gold from various gold properties. Brown also sent a copy of an article that appeared in the Dec. 27, 1982, issue of Fortune magazine. This issue carried an article by Walter Guzzardi, Jr. "The Huge Find in Roy Ash's Backyard." The article gives the history of Newmont's leasing in Nevada on property that became the Carlin, Bootstrap and Blue Star Mines. The article states that the initial royalty was 10% that escalated to more than 16%. Another property, the site of Gold Quarry, provides an 18% royalty to the same own¬ers. The article makes interesting reading for those interested in mining history.

Jan 1, 1991

By Giorgio De Tomi, Ricardo Tichauer

Mineral exploration is a critical step for success in mining. However, small-scale mining often ignores exploration best practices. This paper introduces the Tichauer-DeTomi Matrix, a tool for assessment of geological uncertainty in small-scale mining. This matrix, which measures the level of compliance of exploration programs in small deposits with industry best practices, has been applied to three small mining projects in Brazil: an artisanal gold mine in the Amazon, a small-scale manganese mining venture in the Northeast, and a small manganese deposit in the Southeast. The application of the matrix resulted in indexes that reflect the actual level of maturity of the mineral exploration program in each project. Therefore, the matrix has shown potential to be an effective tool for assessment of the geological uncertainty remaining in small-scale mineral projects, as well as to identify priority exploration activities for reduction of risks associated with the geological uncertainty. As a risk assessment tool, the TichauerDeTomi Matrix may be helpful in promoting investment and sustained development in and around small mines.

By P. L. Crouse, S. J. Lubbe, M. J. Kabangu

A selective extraction and separation of zirconium by solvent extraction with 1-octanol is proposed. The process is based on the dissolution of the metal basic carbonates in hydrochloric acid in the presence of potassium fluoride, using 1-octanol as extractant. The effect of several process parameters, including hydrochloric acid and potassium fluoride concentrations, reaction time, and phase ratio between the aqueous and the organic phase was investigated. Zirconium is enriched in the organic phase. The best extraction and separation results were obtained with the basic carbonate dissolved in 10% hydrochloric acid and 1.5 M potassium fluoride. The optimum reaction time was 15 min with an organic to aqueous phase ratio of 2:1. Based on the selectivity of zirconium over hafnium in the organic phase, a McCabe-Thiele diagram was constructed. A near complete stripping of zirconium from the organic phase was achieved using a 3 M sulphuric acid solution. Additional studies are required in order to determine the reaction mechanism and the chemical speciation of the current investigation.

By Laurens de Jonge, Wiebe Boomsma, Rodney Norman, Stanislav Verichev

"Earth provides natural resources, such as fossil fuels and minerals that are vital for human life. As the global demand grows, especially for strategic minerals, commodity prices rapidly rise. Thus there is an identifiable risk of increasing supply shortage for minerals. Hence a major element in a long-term economic strategy must be, to ensure security of supply for these strategic minerals. In this rapidly changing global economic landscape, deep sea mining has gone from a distant possibility to a likely reality within just a decade.Although deep sea minerals extraction was investigated in the 1970’s, it was abandoned because of changing commodity economics, advances in on-land exploration techniques, growing concern on environmental impact, and political and legal aspects with regard to ownership issues. The developmental data from those days, if still available, are not adequate to allow engineering and building of an integral system for extraction of deep sea minerals without additional R&D work. Thus, deep sea mining is yet to attain a Technology Readiness Level (TRL) sufficient to successfully undertake deep sea mining operations, from resource discovery to resource assessment and to resource exploitation [Blue Mining, 2014]."

Sep 1, 2014

By R. F. Balazik

By March 2001, shrinking global markets, reduced consumer spending and declines in domestic manufacturing and industrial output ended the longest economic expansion in US history and pushed the nation’s economy into its first recession in a decade. Aggravated by the terrorist attacks of Sept. 11, the recession led to large reductions in the domestic production of processed mineral materials. Some of the most significant production declines in the US metals industry were registered by aluminum, copper and steel producers. They faced strong foreign competition, higher energy costs and lower prices for their products. However, homebuilding and other domestic construction sectors — major users of nonmetallic mineral products such as cement, brick, glass and stone — remained strong enough to help raise the output of industrial mineral materials slightly above previous year levels. A strong US dollar continued to weaken the competitive stance of US metal and nonmetallic mineral materials companies alike against foreign producers in markets at home and abroad.

Jan 1, 2002

By Y. C. Kim, I. S. Roditis, P. K. Medhi

P. Mousset-Jones I found the article most interesting and timely. I consider it imperative that mine case studies like this one are undertaken and published so that the practicing mining engineer and geologist can obtain a better idea of what is the preferred estimation and grade control technique to use, given the site-specific geology, grade distribution, etc. Mining companies, with operating gold mines, need to be encouraged to either initiate such a study in-house or support a research project by financing a graduate student at a local university. The latter method is preferable since it not only provides research support but also an excellent training opportunity for young mining engineers and geologists. Ideally, what is needed is exploration drill-hole, blasthole, and mine production data that can then be used to assess the efficiency of different estimation and grade control methods by comparing the results obtained using the drill/blasthole data with the actual production data. It is hoped that more mining companies will realize that the rewards from this kind of research greatly outweigh the sometimes perceived problem with releasing data to a university. I noticed that the authors used the blasthole data to represent the actual values, the validity of which relies heavily on the two key assumptions with regards to blasthole assays and in-pit ore-waste selection procedures. Could the authors comment in more detail on these assumptions and what criteria they used to check the validity of the assumptions? Since the article was published, have the authors had the opportunity to compare their estimates with the actual production data? It would be interesting to compare other estimation methods with OK and IK. For example, how well did the polygonal method used at the mine compare with the results given in the paper? I would like to mention that B.L. Kwa completed a similar study (Kwa and Mousset-Jones, 1986) using exploration drill-hole, blasthole, and production data from the Alligator Ridge mine in Nevada. The study compared a variety of estimation methods, including IK, and the final results are shown in Fig. 1. The IK method exhibits the smallest difference between estimated and production results and is closely followed by the indicator moving window (Ind MW) method. Reference Kwa, B.L., and Mousset-Jones, P., 1986, "Indicator Kriging Applied to a Gold Deposit in Nevada," Proceedings, Symposium on Ore Reserve Estimation Methods, Models, and Reality, CIMM Annual Meeting, Montreal, Quebec, Canada, May, pp. 185194. Reply by Y.C. Kim We do concur with Professor Mousset-Jones with respect to the merit of such case studies performed at a local university. In answer to his request for comment on the validity of the two key assumptions made in our paper, we can only say that these are reasonable assumptions that are very difficult to validate. The assumption of blasthole assays being accurate can be partially validated by a careful analysis of the nugget component of blasthole variograms. The assumption that the in-pit ore-waste selection procedure in use was an effective one can only be validated through comparison between the mine estimates of ounces of gold versus the actual recovered ounces of gold at the mill. Neither one of these two assumptions has been validated to date due to several reasons. For example, the mine went through a change in management since the study. Similarly, no compelling reasons have been presented to perform detailed variogram analysis of the blasthole data. We do, however, believe that the obtained results (i.e., indicator kriging performs better than OK in a highly skewed deposit) will remain the same in relative terms, regardless of how valid these two assumptions may be. The most recent comparative study by D. S. Lindsey of the Montana College of Mineral Science and Technology also shows a similar ranking between ordinary kriging versus probability kriging, which is an extended version of indicator kriging. Reference Lindsey, D.S., 1987, "A Comparative Study: Probability Kriging vs. Ordinary Kriging at the Golden Sunlight Mine," MS Thesis, Department of Mining Engineering, Montana College of Mineral Science and Technology, Butte, MT, May, 81 pp.

Jan 3, 1988

By Hendrick A. D. Kirsten, A. Clayr Alexander

Stillwater Mining Company is currently developing a second underground palladium and platinum mine approximately 21 km (13 miles) west of their existing Nye operation in the Bear tooth Mountains of southern Montana. Portals for the two access tunnels required at the new site were excavated in limestone talus to accommodate4.6 m (15 feet) diameter tunnel boring machines. A review of the technical design, field conditions and construction of the portals is presented.

Jan 1, 2001

By A. D. S. Gillies

Diesel engine particulate matter pollution is a matter of concern currently in underground mines worldwide. A number of real-time Diesel Particulate Matter (DPM) monitors have been developed in recent years; two of these by the National Institute of Occupational Health and Safety (NIOSH) in the US. One, the D-PDM, is based on an adaption of the successful NIOSH?s Personal Dust Monitor (PDM) unit which is being taken up very successfully for mine respirable dust monitoring. The D-PDM measures all particulate matter within a sub-micron range as classified nominally at 0.8 micrometers by a purpose developed cyclone. The other, the FLIR Airtec, measures the Elemental Carbon (EC) component of DPM by a laser scattering approach. Both instruments have been evaluated underground in robustness and reliability testing in coal mines by the authors. Real time DPM monitors allow greater understanding of the sources and levels of DPM pollution in underground activities. They allow engineering evaluations to determine how conditions can be improved or mining personnel relocated to lower concentration levels. Studies are discussed that examine DPM concentrations from vehicles under varying ventilation conditions. Some of these concern tests undertaken during high activity longwall face moves. They focus on evaluating DPM during the various phases of the face Chock Shield moves. An initiative in some mines has been to limit the number of vehicles in the mining section or panel by the use of a Tag Board or Traffic Controller at the panel travel road entrance to manage exhaust DPM and gases. Diesel tags or tokens are used to control the number of vehicles entering a section or panel and so limit level of pollution. Summation of DPM levels from points monitored throughout a panel demonstrates increasing DPM levels from influence of additional equipment in series within the ventilation circuit. An alternative approach is to invest in underground continuous real-time monitoring of exhaust gases, DPM and section air quantity and integrate this information to determine whether an additional vehicle can enter without exceeding diesel target limit. This optimizes the access of diesel vehicles and replaces the existing manual tag board system. Real-time DPM monitoring allows the industry to pin-point high exposure zones such as those encountered where various vehicles work in areas of constrained or difficult ventilation. Identification of high DPM zones allows efficient modification of mine ventilation, operator positioning and other work practices to reduce underground miners? exposures.

Jan 1, 2012

By J. D. Miller

Characterization of feed material with respect to expected concentrate grade and recovery is fundamental to the design of improved separation efficiencies and to achieve sustainable development in the utilization of our mineral resources. An important reference point for this characterization is the liberation-limited grade/recovery curve which represents the perfect separation, the best separation which can be achieved for a given feed material limited only by the extent of liberation. Now, liberation-limited grade/recovery curves can be determined based on 3D mineral liberation analysis of feed material. Thus, actual separation efficiencies can be compared to what might be expected for a perfect separation limited only by the extent of liberation. It is shown that 3D mineral liberation analysis based on X-ray micro CT (XMCT) is preferred to 2D section analysis which overestimates the extent of liberation. By way of example, procedures and experimental results are presented and discussed for feed material in the case of phosphate rock flotation.

Jan 1, 2009

By Z. T. Bieniawski, E. H. Skinner, R. A. Cummings, F. S. Kendorski

INTRODUCTION Caving Mine Drift Support Design The support of production drifts remains a high-cost item facing the developer or operator of an underground caving mine. Support costs are incurred well in advance of ore production, and there is a strong need to minimize these pre-production commitments of capital. Due to the extensive rock loads that normally develop during the caving process, the support used in caving mines is typically quite heavy and therefore costly. The process of designing this support increasingly makes use of basic tunneling principles, but is hindered by the still-incomplete state of knowledge of rock behavior in caving mines, and high variability of geological conditions in caving orebodies. Caving mines differ from tunnels in that the deformations and rock loads induced are transient and dynamic in occurrence, and are normally large in magnitude, often well in excess of rock mass strength. As opposed to tunnels, caving mine layouts are more intricate, and the methods and effects of construction ordinarily are not as closely monitored. Safety factors in mining tend to be lower and rock masses tend to he weaker. These aspects prevent strict application of tunnel design technology to caving mine drift support, with the result that mine drift supports are commonly designed chiefly on the basis of experience at other mines. Mining procedures at caving mines are evolved in response to site-specific requirements, to the extent that there are really as many caving methods as there are caving mines.

Jan 1, 1983

By M. M. Poulton

Universities are not immune from the large number of retirements facing the mining industry. Department heads anticipate that we will need to replace all of the senior mining engineering faculty in the U.S. by 2020. Long term studies of Ph.D. completion times and success rates indicate that in Engineering disciplines in the U.S., the ten year completion rate is 65% at best and the four year completion rate is less than 8%. We do not have accurate data on completion rates and times for mining or metallurgical engineering Ph.D. students in the U.S. but students self-report their expected completion times are around 4 years. National data on doctoral students indicate that younger, full time students with sufficient financial support have a higher probability of success in completing their degrees in a timely manner. Students in Eastern U.S. mining engineering programs are on average 32 years old, 85% are full time, and the gap between support and cost of attendance is $5,000 per year. Students in Western U.S. programs are on average 38 years old, 78% are full time, and the financial gap is $8,483. Further, it appears that domestic graduate students are not very geographically mobile. The current demand for new faculty is higher in Western programs but the longer term retirements are higher in Eastern programs. While all Ph.D. students who responded to the 2010 survey indicated an interest in a faculty position at some point in their careers, very few were applying for the open positions. Over the past 35 years for which data could be obtained, the maximum number of Ph.D. students enrolled in mining engineering in the U.S. is 115 with a maximum of 27 degrees granted in one year. On average 89 students are enrolled in doctoral programs in mining engineering in the U.S. with average degree production of 15 Ph.D.s per year.

Jan 1, 2012

By V. McLemore, N. Dunbar, K. Donahue

There are three principle lines of evidence that indicate the clay minerals found in the Goathill North (GHN) rock pile at the Molycorp mine are predominantly a product of hydrothermal alteration, not weathering. The unweathered drill core and samples from GHN have similar types and abundances of clay-mineral groups based on XRD analysis. Chemical analyses from the electron microprobe reveal similar chemical compositions for the hydrothermal alteration clays in drill-core samples and clays found in the rock pile. Textural evidence gathered from petrographic and microprobe examination also suggests a hydrothermal origin for clay minerals.

Jan 1, 2007

By A. Yu. Lein, V. V. Maslennikov, S. P. Maslennikova, I. Y. u. Melekestseva, Yu. A. Bogdanov

Tellurium is a high-tech and also toxic element. This element shows sufficient contents in Fe-Mn crusts and nodules in the modern ocean to be involved in future industrial processes [Hein et al., 2003]. Tellurium minerals and contents are not well recorded in modern and ancient black smoker systems. Tellurides are rarely found in sulfides from the modern oceans [Iizasa et al. 1992; Maslennikov et al., 2010]. The previous common opinion that tellurium is scarce in active seafloor hydrothermal systems can be revised due to the recent discovery of abundant tellurides in chimneys from Brothers Volcano vent site [Berkenbosch et al., 2012]. We found abundant tellurobismuthite, hessite, and native tellurium in chimneys from Su Su Knoll vents sites (West Pacific). So, tellurides can be found in some chimneys but absent in others. The causes of this are poorly understood. These conflicting data create numerous questions and require an explanation. The problem can be resolved by research at different scales including analysis of relevant genetic features of host sequences, systematic textural and paragenetic studies of different types of chimneys, and their rare mineral assemblages. Paragenetic models, compositional analyses and ranges of tellurium-bearing minerals and the physicochemical interpretation of chimney diversity in different types of VMS deposits are the main subjects of our research. The data on tellurides in chimneys from ancient VMS deposits should also be useful to resolve this problem.

Sep 1, 2014

By Jonathan Taylor, Irwan Halim, Frederick (Rick) Vincent

The new underground facilities for the LINAC Coherent Light Source project at the Stanford Linear Accelerator Center in Menlo Park, CA, are constructed in very weak sedimentary rock interspersed with uncemented zones. In addition to several 21-footwide (excavated) tunnels, the NATM excavations include a large, 49-foot wide (excavated) cavern, an unprecedented size in this geology. The critical design issues include characterization of the weak rock, some shallow rock cover areas, and very stringent criteria for final invert slab movements within the tunnel. The design also incorporated severe seismic criteria, since the site is in close proximity to the San Andreas Fault.

Jan 1, 2007

By Garry Keizer

The Cortez gold mine is located in Lander County, NR, about 130 km (80 miles) southwest of Elko. Cortez Gold Mines (CGM) is a joint venture between Placer Dome US Inc. (60% operator) and Kennecott Corp. (40%). The claims that supply oxide and refractory ore feed to the Cortez milling facility are located in both Lander and Eureka counties. These include the Cortez and Horse Canyon deposits, all operated by the joint venture. Other deposits outside the CGM claim area include Fire Creek, Buckhorn, Gold Bar and Tonkin Springs. These deposits all occur along the Battle Mountain-Eureka Trend. History Mining in the Cortez district began in 1862 with the discovery of high-grade silver ores. Grades in the hundreds of ounces per ton occurred in an area 7 km (4.5 miles) southeast of the current CGM mill site. Underground mining through the Garrison and Arctic tunnels provided the bulk of the ore production between 1864 and 1895. To a lesser extent, the Mill Canyon area also supplied ore until 1930.

Jan 1, 1993

Queensland?s underground coal industry, as a whole, has arguably the best gas monitoring systems in the world. Each mine utilizes real time, tube bundle and onsite ultra fast gas chromatograph systems. Queensland?s mining legislation has specific requirements for mine gas monitoring but there is no requirement for all three techniques. Industry has however identified the need for all three and adopted this as a standard, resulting in over sixty thousand gas results collected each day. Automated monitoring systems are programmed to alarm for gas concentrations, gas ratios and explosibility. These alarms are then used to initiate predetermined actions to take control of the situation and prevent the compromise of safety to workers and the loss of resources. Dedicated software packages have been developed to assist in the interpretation of the large volume of results generated. The real time systems are used for real time warning, essential for incidents such as belt fires. Tube bundle systems suit long term trending used for identification of the onset of spontaneous combustion or for the determination of explosibility during the routine sealing of worked areas. Gas chromatograph analysis is used to provide a complete analysis and provides results for hydrogen and ethylene, key gases used in the assessment of spontaneous combustion. It is also crucial during significant spontaneous combustion events and coal fires to use gas chromatography to determine the explosibility status of the underground atmosphere otherwise the severity of the situation is likely to be under estimated. This paper outlines the need for all three techniques for assessing the underground status and outlines advantages and disadvantages of each.

Jan 1, 2009

By T. A. Rundle, K. Kim, W. M. McCabe, E. C. Gregory

Overcoring tests were conducted at the Near-Surface Test Facility(NSTF) to assess the suitability of five techniques (U.S. Bureau of Mines borehole deformation gauge (BDG), Commonwealth Scientific and Industrial Research Organization (CSIRO) hollow inclusion stress cell, Luleå triaxial gauge (LuH gauge), and Council for Scientific and Industrial Research (CSIR) doorstopper) for in situ stress determination in a closely jointed basalt. This effort is in support of the Basalt Waste Isolation Project, which is studying the feasibility of locating a nuclear waste repository in the basalts of the Hanford Site in southeastern Washington. This paper presents the results from the overcoring study that formed the basis for selection of two techniques to be used during the further exploration of the basalt formations at depth.

Jan 1, 1983

By D. Bessinger, J. Nell

The electrical conductivity of rutile was optimised as a function of time, temperature and gas composition. These optimised conditions were used to treat rutile/zircon feed prep concentrate samples from a South African heavy minerals producer, prior to electrostatic separation. Enhanced separation between rutile and zircon was obtained when compared to untreated samples. Samples treated in a hydrogen atmosphere and cooled in nitrogen showed the best separation when passed through a high tension electrostatic separator using conditions of high sample temperature and high relative humidity.

Jan 1, 2005

By J. Jonas, J. M. Harrington, K. Wangerud, S. D. Fundingsland, J. G. Harrington

EPA NRMRL Mine Waste Technology Program and Region VIII Superfund office are jointly conducting an in-situ technology demonstration at the Anchor Hill Pit Lake, Gilt Edge Mine Superfund site. The goal is to develop in-situ treatment cost/performance data for potential application in long-term water treatment/management at Gilt Edge and similar sites. The pit contained 77,000,000 gallons of pH 3water with elevated metals, sulfate, and nitrate. The Green World Science® patented process for in situ treatment was implemented to isolate and sequester metals; create stable long-term water quality and restore a sustainable ecosystem. COCs have decreased more than 99%, and dissolved discharge standards were attained.

Jan 1, 2004

By Dean Bray

During the past three years, a new rear-dumping dragline bucket technology has been patented, developed and tested at North Dakota coal mines. Field testing has shown that this new concept in dragline bucket technology can improve strip-mining efficiencies by reducing cycletimes and increasing dumping radius. This article details the process, participants and the results for the development of a rear-dumping dragline bucket. Participants in the process In November 1995, the board of directors of Dakota Coal authorized the execution of a field test and option agreement and a license agreement with the partnership of D.F. Schmidt, electrical/maintenance supervisor, and Bill Lengenfelder, president of Modern Industrial. The board also authorized entering into a dragline bucket field-testing agreement with the Falkirk Mining Co.

Jan 1, 1999